Improved construction markets will support demand for demolition equipment.
(PRWEB) November 27, 2014
The Demolition Equipment Manufacturing industry has performed inconsistently during the past five years. The industry's performance is closely tied to the construction market, as property developments often involve demolishing existing buildings and structures and cleaning up sites to make way for new construction. According to IBISWorld Industry Analyst Dmitry Diment, “During the recession, the collapse of the real estate market crippled the construction and demolition markets, causing downstream construction industries to purchase less demolition equipment.” International markets also suffered from declining confidence, causing the value of exports to fall dramatically in 2009. However, export markets were quick to rebound, assisting rapid industry recovery. In addition, countercyclical funding from the public sector for infrastructure renovation and construction, coupled with recovering demand for residential and commercial construction, helped propel demand for demolition equipment. As a result, industry revenue is expected to increase on average in the five years to 2014.
Exports make up a vital market for domestic manufacturers. US operators like Caterpillar and Terex, for example, have expanded heavily into emerging markets in Asia, Latin America and Eastern Europe. From 2009 to 2012, exports resumed stellar growth as demand for demolition machinery is expected to rebound strongly in emerging markets. However, a downturn in demand for US manufactured demolition equipment on account of a strengthening US dollar and stronger competition from international manufacturers has negatively impacted export revenue since 2013. Although exports are estimated to increase over the five-year period, they are expected to fall for a second straight year in 2014. Consequently, industry revenue is expected to decline in 2014.
Improving economic conditions and rising construction activity will encourage companies to invest in new machinery and equipment moving forward. Nonresidential construction is set to grow over the five years to 2019, while the number of housing starts is projected to increase during the same period. “These trends will likely result in a corresponding rise in demand for demolition and demolition equipment, driving industry growth,” says Diment.
For more information, visit IBISWorld’s Demolition Equipment Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
This industry manufactures machinery and attachments for the destruction and removal of buildings and other structures. Industry products include backhoes, breakers, buckets, clamshells, cranes, dozers, excavators, forklifts, grapples, hammers, hoe rams and shears. Products are segmented among three major groups: vehicles and machines; equipment; and separately sold parts and attachments.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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